An irreverent Wall Street Blog
by Bill Singer

Great Recession Blamed For Customer Losses

October 17, 2013

Many registered persons are convinced that the FINRA arbitration process is loaded against them and they cannot get a fair shake. Fact is, ask enough public customers and their lawyers, and you will likely hear the same refrain. Every so often, however, the customer gets a little something and the stockbroker gets a little something and, hey, sometimes everyone wins, everyone loses, everyone is unhappy, and everyone is happy.

In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in September 21, 2012, public customer Claimant Giusto asserted, among other causes of action, breaches of contract and fiduciary duty, and fraud in connection with alleged losses in unspecified stock investments. Claimant sought $133,000 in actual damages, attorneys' fees, costs, expenses, disgorgement of commissions, and interest. In the Matter of the Arbitration Between Thomas A. Giusto, Claimant vs. Edward Jones and Christina Jeanette Price, Respondents (FINRA Arbitration 12-03415, October 11, 2013).

Respondents generally denied the allegations, asserted various affirmative defenses, and requested the expungement of the matter from the Central Registration Depository records ("CRD") of Respondent Price.

On September 9, 2013, parties advised FINRA Dispute Resolution that the matter had settled but that the case should remain open to hear Respondent Price's request for expungement, which subsequently occurred without Claimant's opposition or participating.

The Panel recommended the expungement based upon its finding that:

[A]lthough the Claimant suffered a financial loss, the loss was caused by the market downturn and Claimant's sale of the securities at the bottom of the market rather than any action or inaction on the part of Respondent Price. The facts establish that Respondent Price advised the Claimant not to sell when the value of Claimant's securities fell. Claimant's loss would have been avoided if the Claimant heeded his advice.

Because there is no evidence suggesting that any of the investments suggested by Respondent Price were unsuitable. Claimant's allegation of unsuitability is clearly erroneous. The facts also establish that the registered person did not commit any investment-related sales practice violation. No evidence was introduced proving that Respondent Price's conduct was in any way negligent no less fraudulent or that Respondent Price had in any way violated her fiduciary duty to the Claimant.

Bill Singer's Comment

According to online FINRA documents, this case was settled by Respondent Edward Jones on September 13, 2013, in the amount of $32,500 (without contribution from Respondent Price) and was based upon allegations that:

CLAIMANT CLAIMS THAT HE AND HIS WIFE, AT THE RECOMMENDATION OF HIS FINANCIAL ADVISOR, INVESTED IN UNSUITABLE INVESTMENTS IN 2006. THE CLAIM FAILS TO IDENTIFY THE INVESTMENT(S) AT ISSUE. THE CLAIMANT FURTHER CLAIMS THAT RESPONDENT FAILED TO FOLLOW HIS INSTRUCTIONS IN 2008 TO REMOVE THEIR INVESTMENTS FROM THE STOCK MARKET IN 2008.

Also READ:
Is Arbitration On Wall Street A Rigged Game? 
(7:54 run time) 

Arbitration lawyer Brian Carlis and Bill Singer, Esq. discuss giving up your day in court. Is there any benefit to this bargain, or is it a dangerous trade-off for customers and industry employees?

SIDE BAR WITH BILL SINGER 
NOW ONLINE
Brian Carlis, Esq. Talks About Industry Arbitration


Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC BrokeAndBroker.com Expungement Employment Street Sweeper Bill SInger Jobs Wells Fargo Fraud OBA Promissory Note Email U5 U4 Wire Fraud Forbes FBI UBS Merrill Lynch Elderly EFL Statutory Disqualification Morgan Stanley ALJ PST Citigroup Defamation Borrowing Rule 3270 Ponzi Suitability Outside Business Activity BrokerCheck OIP Whistleblower Supervision IRS Wachovia Form U4 Felony CRD Bank Wrongful Termination Mail Fraud Willful NAC DOJ Supreme Court SDNY Insider Trading Expenses BrokerAndBroker Form U5 Employment Tuesday Raymond James Conversion Madoff Pro Se Discretion Bankruptcy Rule 3240 Ameriprise Rule 3040 WSP Punitive Damages CCO Checks OHO Credit Card Forgery Private Securities Transaction IRA Dodd Frank RIA Rule 2010 Indictment JP Morgan Real Estate Outside Business Activities Discovery Settlement Rule 8210 Tax Street Legal NASD Exam Commissions Willfulness Rule 1122 LPL Facebook ATM Power of Attorney Wife Estate NYSE Business Expenses 2Cir Bar Rule 2080 Guest Blog Wall Street Husband Impersonation Case In Point Tax Lien Corrective Action Statement Schapiro Test Bank of America Wire Appeal Edward Jones Stephen Kohn Antitrust SRO Small Firm Tax Liens Employee Forgivable Loan Rule 2510 Goldman Sachs Margin Offer of Settlement Trust Schwab Annuities Mortgage Rule 3280 ARS Spouse NASAA Conspiracy Securities Fraud ETF HFT Signatures Misdemeanor Trustee Complaint Promissory Notes Chase Fidelity Flash Crash T&P NSF Beneficiary Initial Decision Cease And Desist Loan Injunction Barclays Money Laundering BrokeAndBroker Away Account Lien Due Diligence NASDAQ LOA VA Signature Huffington Post Bonus Registered Rep Magazine PCAOB Liens Credit Cards Bharara Deutsche Bank RBC MSSB RRBDLAW.com DCCir Lehman Brothers Unauthorized Discretion POA Remand Variable Annuity Gallagher CFTC Unfair Competition Continuing Education Hacker Annuity Identity Theft Malware E*Trade Burris Solicitation Mandatory Arbitration Letter of Authorization Forex OTR employment email Annual Compliance Questionnaire FINRA Arbitration Eligibility Rule Undisclosed Settlement Wey Fiduciary Hacking Prison Away Accounts Insurance Net Capital Registration Failure to Supervise JPMorgan Scottrade Stay Spouses arbitration Rule 12206 Rule 3010 Social Media Rule 3050 Wedbush Solicited Second Circuit Stockbrokers LIBOR Website jobs 2nd Circuit BOP Audit Retirement TRO Customer Complaint Bureau of Prisons Rule 4530 10Cir Trading Platform Rule 4511 Brummer Guest Blogger FINOP Compliance Telephone Rule 12805 Private Securities Transactions RRBDlaw.com Broker Protocol IC3 BrokeAndBroker Bill Singer Will Newman Private Placement Reg SP Options Time And Price FOREX Judgments Unsolicited Internet Great Recession Piwowar Obstruction of Justice Auction Rate Securities Hedge Fund Examination Cheating Spoofing Rakoff MetLife RMBS Dissent ADA Rule 2111 Self Regulation Willfully REIT China Confidential Information OWB Unauthorized Trading Knight NYAG Sanctions Plea DOL Divorce BrokeandBroker Apple Disclosure Explained Decision brokeandbroker Protocol Joshua Brown Article V Retaliation Arbitraiton Rule 2081 Variable Annuities Sanction Guidelines Discrimination Customer Medicare Raiding Affinity Fraud Lehman Postponement IPO Banc of America Phishing EIA Executor Confidential Crowdfunding Deceased Stifel Wine SAC Hurry Aleynikov Vacatur Woody Allen Board PNC Reg D OSHA Check Kiting PN Class Action Reimbursement Affiliate Debit Card MF Global Botkin Ketchum Motion to Dismiss Passcode Shah Gilani Morgan Keegan Khuzami Due Process 9Cir Gold Bandimere Wire Transfer Unsuitability Commission Disgorgement Regulation SP High Frequency Trading Charge Sexist Stanford Side Bar Information Ride the Thunder Aguilar Vietnam Charles Schwab Testimony Marine Corps Marines Vault Statute of Limitations Statement of Corrective Action Mutual Fund Termination Poteroba Rosenthal Recruiting Appointments Clause Deferred Compensation Testing Failure To Supervise 6th Circuit Rule 3030 Marketplace NPR Hearing Bid Rigging JOBS Act Reg S-P Confirm Employment Agreement Johnny Burris HSBC bill singer Corruption Chief Compliance Officer Private Placements Customer Information Whistleblowing USERRA Guitron Yesenia Guitron Kon Eligibility Lucia Conflict 401k Pennystock White Whitman Government Accountability Project Morgan Stanely Fees Self Regulatory Organization Jurisdiction Check Parking Penson WSPs Personal Expenses OIG Embezzlement ING Lawyer Loans Oppenheimer Day Trading MC-400 CEO McDuff Smith Barney Unregistered Bank Fraud Series 7 Morgan Stanley Smith Barney CE Commodities Fraud Disability Consent Order Sales Assistant ACQ Finder\'s Fee Online Charity Sexism Widow Casino Indemnification Rule 12200 Dakota Securities Bear Stearns Zipper Stifel Nicolaus Waiver Corzine Bloomberg Laptop Marijuana Unjust Enrichment Pennystocks Compensation Teleconference Timban Emails Backstage Wall Street Counterclaim Written Supervisory Procedures Leveraged ETF Broke And Broker Outside Account Restaurant 40 Act Non-Solicitation FCI Beaumont Department of Justice FCI Layering Medical Condition Elles David Sobel expungement Guest Bloggers Red Flags Thain Commodities Small Firm Governor CGMI Moon Negligence Sharemaster Feigenbaum IAR Form ADV WaMu 401(k) Fifth Amendment Rule 2150 Client Information BATS Elder Abuse Female Trade Secrets Stockbroker OCIE Tortious Interference Investment Adviser FNMA Verbal Discretion TIC Oral Discretion Rule 13805 Florida Imposter Schneiderman Hospital Suspension SP Chase Investment Services Sexual Harassment OWWP Frumento FINRA AWC Christian Stanley Do Not Call Taft Correctional Institution Hilton Weiner Dell RRBDlaw Chiasson Research 11th Circuit Unauthorized Practice of Law TSSB Credit Suisse Scholander Arrest Inmate Fowler TheBlot Reverse Life Insurance FOCUS Judgment Equity Indexed Annuities Dementia CNBC Administrative Remedies Netschi Churning Argentina Rule 3110 Scottsdale Rule 2370 4Cir Tax Fraud Securities Industry Commentator TD Ameritrade Third Party Vendor Accounting Margin Call Severance Inside Information Probate Rule 9216 Investor Alert Lincoln Financial CPA BrokerAndBroker.com Rule 1031 AML Outside Accounts Rule 2210 Stipulated Award Circuit Court Moore Bonds Data Joint Account Evidence Immunity Board of Governors Euro Obamacare 8210 Mother Gabelli Reverse Merger Retroactive Bar Collateral Bar Municipal Advisor Scam Currency Enforcement FNI Media NYG Capital Retroactive Cybercrime NRSRO US Airways Cellphone Subway Johnson SEC Rules of Practice Altered Records Bartko FCPA Prime Bank JPM Reform RRBDLAW S&P Money Market God Books and Records Electronic Communications Personal Information Stop Loss Goble Supervisor Obstruction Rules of Practice Falsification Inability to Pay Sexual Discrimination Dinner Nationwide FTC Costa Rica Motion To Dismiss false statements Office of Special Counsel iPhone Tippee Promoter Selling Away Constructive Discharge Fourth Amendment Hugh Hewitt Membership Continuance AWC. FINRA Statutory Disqualification Committee LLC Varney Compromise Liquidation Salman Short Sale FINRA Small Firm FMLA CDO Fiduciary Duty Laser Commissioner Stein Disparate Treatment FDA Concentration Wages Outside Counsel 17a-5 Mattera Collateral Chevron Annual Audit In House Counsel Theft Attorneys\' Fees Merrill Payroll Relevant Escrow Anderson Pruco Lee Customer Files Motion to Vacate CRS Unsuitable Practice Sale David Lerner NML 1Cir Flash Drive Privilege Expense Initials Taxes Trainee Fee TOD Murray Kenneth Starr DWI Withdrawals Fines Leveraged ETFs PAQ BrokeAndBroke Fiero Books And Records Blank Forms BD Sex Texas State Securities Board Stock Promotion House Financial Services Apartment Cannabis SD Broy Resignation Pension Standing SunTrust Proctor Subpoena Executrix Koval Nasdaq BitTorrent Disciplinary History PIABA Preet Bharara Galleon Kennedy Turbeville Fee Kiting Jon Corzine Skimming Silver Manifest Disregard Lewis Carroll Advisor Placement Group Credit Repair Checking Compliance Questionnaire Bank Guarantee Naskovets Counterfeit Texting Undercover McCartney Springsteen Martin 9th Circuit Tipper Quasi Governmental Over Concentration Lek Motion Undertaking Mary Schapiro Permanent Bar Congress Password Mutual Funds Attorneys Fees SIPC VXX Tennis Court Rule 9552 Wells Fargo Advisors Retired Woman With Cane Oilpro Fine signature Bill Singer BrokeAndBroker Mary Jo White Spam Summary Judgment Excel Securities and Exchange Commission Hertz Rule 420 VIX Exhaustion Doctrine Regulation S-P Star Wars AIG Lawyers Countrywide Reason for Termination Rule 4513 Public Interest Impersonator Customers Wanger Tran Reuters Elder Fraud Dow Boyland Walter Kent EDNY Non Solicitation Brokeandbroker.com Eric Stein Grievance Pacifico Rule 13200 Schumer BBVA Aegis Frumento Sharing Agreement 1099 Death Google BrokeandBroker.com Spoliation GAP Martoma Trading Branch Manager Bribe Federal Reserve FINRA Board AXA Trader Test Center Solomon Non-Prosecution Agreement Criminal ACH Cherry Picking Diabetes Settling Away